Capital Gains Tax

[Christmas Tree 4704]

Just trying to work out some figures and not looking for a free accountant.

 

Selling a property at the moment. As it's in joint names with the wife, is the right course of action to split the gain between us so that we each can use our annual £10,000 tax free allowance?

[ewerk 30321]

Yes, as long as the profit is being split equally.

[Christmas Tree 4704]

Yes, as long as the profit is being split equally.

 

Cheers

[ewerk 30321]

Is this purely an investment property or have either of you ever lived in the house?

[Christmas Tree 4704]

Is this purely an investment property or have either of you ever lived in the house?

 

Purely investment and has been used as a buy to let since we bought it.

[Park Life 71]

Basically they find so many ways of parting you with your hard earned money.

[peasepud 59]

Just trying to work out some figures and not looking for a free accountant.

 

Selling a property at the moment. As it's in joint names with the wife, is the right course of action to split the gain between us so that we each can use our annual £10,000 tax free allowance?

 

Times are hard, the countries desperately in debt and yet again another Tory voter looks to fiddle the system.

[Christmas Tree 4704]

Just trying to work out some figures and not looking for a free accountant.

 

Selling a property at the moment. As it's in joint names with the wife, is the right course of action to split the gain between us so that we each can use our annual £10,000 tax free allowance?

 

Times are hard, the countries desperately in debt and yet again another Tory voter looks to fiddle the system.

 

Fuck right off, notice the words right course of action.

 

You want to sell your belongings and give it all to Cameron, feel free.

[Tom 14011]

Keep Calm.

[Guest alex]

Lock up your rifles!

[Sonatine 11324]

Lock up your rifles!

 

Naughty

[peasepud 59]

Just trying to work out some figures and not looking for a free accountant.

 

Selling a property at the moment. As it's in joint names with the wife, is the right course of action to split the gain between us so that we each can use our annual £10,000 tax free allowance?

 

Times are hard, the countries desperately in debt and yet again another Tory voter looks to fiddle the system.

 

Fuck right off, notice the words right course of action.

 

You want to sell your belongings and give it all to Cameron, feel free.

 

Right course of action in this case being "for yourselves" not the country, how many free school meals could have been purchased with the tax paid on that property?

 

 

 

 

 

 

 

5

 

 

4

 

 

3

 

 

2

 

 

1

 

 

 

[Kitman 2204]

Just trying to work out some figures and not looking for a free accountant.

 

Selling a property at the moment. As it's in joint names with the wife, is the right course of action to split the gain between us so that we each can use our annual £10,000 tax free allowance?

 

iirc the tax follows the legal analysis. So you split it 50/50 between you and the wife. You're each then entitled to offset your annual CGT exemption. You should look into whether you can deduct your acquisition and disposal costs, improvements and indexation allowance from your respective gains. Mr moneybags.

[Christmas Tree 4704]

Just trying to work out some figures and not looking for a free accountant.

 

Selling a property at the moment. As it's in joint names with the wife, is the right course of action to split the gain between us so that we each can use our annual £10,000 tax free allowance?

 

iirc the tax follows the legal analysis. So you split it 50/50 between you and the wife. You're each then entitled to offset your annual CGT exemption. You should look into whether you can deduct your acquisition and disposal costs, improvements and indexation allowance from your respective gains. Mr moneybags.

 

 

 

I'll check into that, cheers.

[Monkeys Fist 42117]

Don't forget to claim back the duck moat.

[Christmas Tree 4704]

Don't forget to claim back the duck moat.

 

 

The front or the back one?

[Monkeys Fist 42117]

Don't forget to claim back the duck moat.

 

 

The front or the back one?

The one next to the gun rack.

[ewerk 30321]

Aye, you can deduct your acquisition and disposal costs and the cost of any capital improvements. You can't deduct the cost of repairs and maintenance and indexation allowances no longer apply to personal CGT.

[Christmas Tree 4704]

Aye, you can deduct your acquisition and disposal costs and the cost of any capital improvements. You can't deduct the cost of repairs and maintenance and indexation allowances no longer apply to personal CGT.

 

 

Seems very lenient of the old HM Treasury.

 

So with regard to disposal costs, does that include hips fee, estate agents fee, solicitors fee etc and at which point do you deduct this cost, ie off the total profit.

 

 

example

 

100k Profit - minus disposal costs = 95,000 - Tax free allowance (10k approx) = 85,000 to pay tax on

[ewerk 30321]

I'm on the phone at the min but I'll show you a proforma later when I get on the computer.

[Christmas Tree 4704]

I'm on the phone at the min but I'll show you a proforma later when I get on the computer.

 

 

Cheers

[Monkeys Fist 42117]

Just trying to work out some figures and not looking for a free accountant.

*cough, ahem, cough*

[Christmas Tree 4704]

Just trying to work out some figures and not looking for a free accountant.

*cough, ahem, cough*

 

 

;)

 

I dont feel too bad because I once gave Ewerk some taxi advice when he visited Penshaw.

 

(Not quite the same, I know)

[Monkeys Fist 42117]

Just trying to work out some figures and not looking for a free accountant.

*cough, ahem, cough*

 

 

;)

 

I dont feel too bad because I once gave Ewerk some taxi advice when he visited Penshaw.

 

(Not quite the same, I know)

Dont take the "short-cut down this dark country lane I know" ?

[ewerk 30321]

Right, basically the proforma is this:

 

Proceeds..............................X

Less costs of disposal...........(X)

Net proceeds........................X

Less allowable costs.............(X)

Gain....................................X

Losses to set off...................(X)

Gain....................................X

Annual exemption...............(10,100)

Chargeable gain...................X

CGT @ 18%.........................X

 

So, you take the proceeds and deduct the cost of disposal (solicitor's fees, estate agent fees and I'm assuming HIPS fees). That gives you your net proceeds. You then deduct allowable costs (the price you paid for the place, solicitor's fees incurred, surveyor costs etc, the value of any capital improvements). That gives you your gain. You then deduct any capital losses from the current year and past years (if you have any). That gives you you total gain. You then deduct your annual exemption (which is £10,100 assuming you've made no other capital gains during the year). And then you take 18% of that and that is what you owe HMRC.

 

You and your wife should do one of these each, ensuring that you divide the proceeds, costs etc by two. So if the house sells for 200k then your proceeds are 100k, if you bought the house for 100k then your allowable costs are 50k etc etc.